AAP EXAM REVIEW SAMPLE TEST
1. Which of the following specify the requirements for reserves that a depository
institution must maintain at a federal reserve bank?
Answer Reg D
2. Which of the following specifically addresses national banks and their need
to evaluate a large dollar payment system network risks and requires reporting
this to top management and maintaining agreements with all parties that they
do business with?
Answer OCC Banking Circular 235
3. Which of the following payment systems is referred to as a real-time and
gross settlement?
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,Answer Fedwire Funds Transfer
4. Choose the correct description of the Acquirer in the card network system
Answer A
Financial institution that represents merchants in accepting POS transactions
5. What is the minimum amount of dispute BEFORE a complaint can be filed to
initiate an arbitration proceeding for the ACH Network?
Answer $250
6. Blue Sky Bank does ACH origination for two local companies in town. The
bank has agreements in place with the two Originators in which it provides the
necessary disclosures for UCC Article 4A as required by the NACHA operating
rules. Which provision of UCC Article 4A can be varied by agreement (with
disclosure to Originator)?
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,Answer Choice of Law
7. Anthony opened his checking account with Northern Bank in February. In the
initial disclosures provided by Northern Bank upon account opening, the ATM
fee was clearly stated as being $3.00 per transaction. Effective October 1, the
fee for using an ATM will increase to $3.50. According to Reg E, how many days
prior notice is required when there is a change to the initial disclosures which
results in greater consumer liability?
Answer 21 Days
8. Which regulatory body requires the RDFI to perform a review of all par-
ties to an IAT entry including remittance and foreign correspondent addenda
records?
Answer Oflce of Foreign Assets Control
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, 9. Which of the following lists the participants in check processing order?
Answer Pay-
ee/Bank of First Deposit/correspondent Bank/Paying Bank
10. Which of the following would be a method by the RDFI to officially notify
a Federal Government Agency of the death of a federal government benefit
payment recipient?Answer By returning a post death benefit R14 or R15
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1. Which of the following specify the requirements for reserves that a depository
institution must maintain at a federal reserve bank?
Answer Reg D
2. Which of the following specifically addresses national banks and their need
to evaluate a large dollar payment system network risks and requires reporting
this to top management and maintaining agreements with all parties that they
do business with?
Answer OCC Banking Circular 235
3. Which of the following payment systems is referred to as a real-time and
gross settlement?
1/
33
,Answer Fedwire Funds Transfer
4. Choose the correct description of the Acquirer in the card network system
Answer A
Financial institution that represents merchants in accepting POS transactions
5. What is the minimum amount of dispute BEFORE a complaint can be filed to
initiate an arbitration proceeding for the ACH Network?
Answer $250
6. Blue Sky Bank does ACH origination for two local companies in town. The
bank has agreements in place with the two Originators in which it provides the
necessary disclosures for UCC Article 4A as required by the NACHA operating
rules. Which provision of UCC Article 4A can be varied by agreement (with
disclosure to Originator)?
2/
33
,Answer Choice of Law
7. Anthony opened his checking account with Northern Bank in February. In the
initial disclosures provided by Northern Bank upon account opening, the ATM
fee was clearly stated as being $3.00 per transaction. Effective October 1, the
fee for using an ATM will increase to $3.50. According to Reg E, how many days
prior notice is required when there is a change to the initial disclosures which
results in greater consumer liability?
Answer 21 Days
8. Which regulatory body requires the RDFI to perform a review of all par-
ties to an IAT entry including remittance and foreign correspondent addenda
records?
Answer Oflce of Foreign Assets Control
3/
33
, 9. Which of the following lists the participants in check processing order?
Answer Pay-
ee/Bank of First Deposit/correspondent Bank/Paying Bank
10. Which of the following would be a method by the RDFI to officially notify
a Federal Government Agency of the death of a federal government benefit
payment recipient?Answer By returning a post death benefit R14 or R15
4/
33
